Virtual Asset Service Provider (VASP) License
The virtual assets market brings together services such as crypto exchanges, digital wallets, and token issuance. To operate in this sector, it is necessary to comply with the rules set by each country, which may require a VASP license or at least a legal structure that meets local regulatory compliance.
At Kraemer & Kraemer, we help establish new companies, acquire entities already registered, or handle the application process for VASP licenses, depending on local regulations. We also prepare the documentation and guide the legal process until your project is ready to move forward with certainty.
Overview
A VASP license (Virtual Asset Service Provider) is an authorization that allows a company to offer services with virtual assets, such as exchange, custody, or issuance of crypto and tokens. It is granted only by regulatory authorities in certain countries and requires compliance with AML/KYC policies, periodic reporting, and in some cases, proof of minimum capital.
Holding this license provides legal backing, makes it easier to work with banks and financial service providers, and lowers the risk of penalties or restrictions. It is also possible to acquire a company with an active license or apply for a new one, depending on the needs of your project.
Requirements and documentation for a local license
The required documents vary depending on the activity and country but always aim to support the compliance obligations that local laws demand. In general, these include:
- Articles of incorporation and corporate documents.
- Business plan.
- AML/KYC policies.
- Identity documentation and references for directors.
- Financial statements or proof of funds (minimum required capital).
- Technical or professional experience of the team.
Who needs this license?
A company should consider establishing itself with a VASP license if it:
- Offers a crypto exchange platform.
- Provides custody services or digital wallets with access to private keys.
- Acts as an issuer of tokens or NFTs.
- Participates in OTC trading of crypto assets.
- Processes payments in crypto or tokenized formats.
Companies that offer services such as software development, commercial support, or customer service for virtual asset platforms do not need a VASP license, as long as they do not handle funds or perform custody functions. In these cases, having a properly registered and documented company is enough.
Benefits of having an appropriate structure and license
- Facilitates access to financial services and payment gateways.
- Builds trust with clients, partners, and investors
- Meets regulatory obligations (AML/KYC).
- Provides a legal base to grow or apply for licenses in other countries.
- Guarantees ongoing compliance before the relevant authorities.
Available jurisdictions
At Kraemer & Kraemer, we assist in structuring legal activities related to virtual assets, adapting to the conditions of each country. We also handle direct applications for VASP licenses when local regulations allow.
Saint Vincent and the Grenadines
Since May 2025, Saint Vincent requires all companies offering services with virtual assets to obtain a local license under the Virtual Asset Business Act. This process is regulated by the FSA and requires meeting conditions such as a minimum deposit, professional liability insurance, external audits, and appointing a local representative. It also requires maintaining AML/KYC policies, reporting transactions, and protecting client funds. At Kraemer & Kraemer, we help structure companies and handle the license application with the FSA.
Pre-formed companies for other sectors
In addition to setting up companies with VASP licensing, Kraemer & Kraemer helps structure entities for other sectors. These may be newly formed or existing, and can serve regulated or commercial activities such as real estate, money transfer services, private investment funds (PIF-20), educational institutions, translation services, or projects that operate under white label models. If you would like to learn about available options or get details on the acquisition process, please contact us for more information.
General process
The process to obtain a VASP license or complete registration may vary by project. Depending on your situation, you might only need to process the license or also establish the company before applying. Generally, these are the most common scenarios:
For those who already have a company established in the jurisdiction granting the license and wish to process only the authorization to act as a regulated provider.
Steps:
- Review of regulatory compliance and current company.
- Preparation and submission of the application to the competent authority.
- Obtaining the license required to offer regulated services.
For those who need to establish a new company and handle the local licensing from the start.
Steps:
- Define the business model and analyze the suitable jurisdiction.
- Incorporate the company under local laws.
- Prepare the required documentation for the license application.
- Handle the process before the regulator until approval.
Note: Specific steps and additional requirements depend on the selected jurisdiction and the type of activity your company will conduct.
Estimated time and costs
Time:
Setting up a company usually takes 2 to 4 weeks. If your business model requires applying for a local or foreign VASP license, the process may extend from 1 to 6 months, depending on the country and regulator requirements. These timeframes are approximate and can vary based on documentation, chosen structure, and the scope of services.
Costs:
Depend on the type of structure, country, and licensing process. Reach out to us to evaluate your case and estimate related expenses.
Contact
If you want to establish yourself legally in the virtual assets sector, contact us. At Kraemer & Kraemer we assist with setting up your company, acquiring an existing entity, or processing the necessary license under the regulations of your chosen jurisdiction.
Frequently Asked Questions
A: It is a company that offers services such as crypto exchanges, custody wallets, token issuance, or processing digital payments.
A: In places like Saint Vincent and the Grenadines, the FSA requires companies operating with virtual assets to apply for a local license under the Virtual Asset Business Act, meeting capital, insurance, audit, and AML/KYC policy requirements. Each authority sets its own licensing process with specific timelines and requirements.
A: Any activity involving the handling of third-party funds or digital assets, such as exchanges, custody, issuance, or crypto payments.
A: It depends on the activity. Some support, development, or consulting functions can be provided without a license. It is important to assess each case by country.
A: Business plan, AML/KYC policies, team experience, and verifiable funds. Some countries require minimum capital.
A: CASP is the term used in Europe under MiCA for similar services. Both refer to operations with virtual assets.
A: Legal entities that meet the requirements of the chosen jurisdiction, have a clear corporate structure, and supporting documentation.
A: No. VASP licenses are local and granted only to companies incorporated under the laws of the country issuing the license. If you want to offer regulated services with virtual assets, you must incorporate in the jurisdiction granting the license. However, it is common to set up companies in other countries for holding, administration, or support functions, as long as they do not directly provide the regulated services.